Owner occupation: Unrented for immediate move in

If you buy a property such as a condominium for your own use, you probably want to move in immediately. In this case, it is less worthwhile to buy a property that is already rented. If you buy a property that is rented out at the time, you can terminate the tenant’s lease on the basis of personal need.

Termination for own use

Owners have the right to terminate due to own need, as long as the notice of own need meets all legal deadlines, which are 3 to 9 months. This only applies if you really urgently need the property yourself or for a family member.

Here is a brief overview:

• Termination for own use possible
• Legal deadlines between 3-9 months
• Comprehensible reason (you or beneficiary move in)

Real estate as an investment: Buy rented

Buying rented or unrented always depends on the given situation. There are advantages and disadvantages for both options, which must be considered in the respective situation.

Advantages and disadvantages of rented objects

Advantages:

• No time required for new leasing
• Payment behavior and behavior of existing tenants is known
• Low risk of vacancy at the beginning

Disadvantages:

• Rental mostly below current market value
• Existing leases must be taken over in most cases

Real estate as an investment: Buy unrented

Again, you will find certain advantages and disadvantages to buying unrented properties. What you end up buying still depends on the circumstances of the property you are buying.

Advantages and disadvantages of unrented properties

Advantages:

• Immediate renovation work possible and deductible
• Market rent for new leases
• Own lease can be used

Disadvantages:

• Vacancy at the beginning: loss of rent
• Expenses for renovation and new leasing

Conclusion for investors

Decide for yourself which factors add the most value to your goals. Depending on that, an unrented or rented property will fit better into your personal strategy.

Next step: termination of own use

Buy a rented property and terminate the tenant’s lease due to personal need? No problem, if you as a landlord have comprehensible, valid reasons why you need the property. Regardless of whether it’s a house or an apartment, here you’ll learn everything you need to know about owner occupancy.

Mistake 1 – The location is decisive

A property in a poor location without high demand quickly becomes a problem. Therefore, one should always buy in an attractive location.

Property in a bad location:

• Low demand
• Renting becomes difficult
• Consequence: Vacancy

Therefore our tip: Pay attention to A- B- and C- layers!

Real estate in good location:

• Buying in large cities (not metropolises in top A locations), example Bonn or Leipzig
• Conurbations, the famous Speckgürtel, with good B-location like everything around Munich, Darmstadt near Frankfurt
• B-location cities in demand, such as Kassel, Braunschweig or Heidelberg

Mistake 2 – A property that is too specific

Special real estate requires a special group of buyers – and this group is not easy to find. That’s why you should always go for real estate whose utility and use covers the needs of the broad masses. In our article on real estate types you can learn everything about apartment, house and co. So what are you looking for on the real estate market?

So what’s there to keep your hands off of?

• Loft/ Villa/ Apartment, everything that exceeds the normal consumer
• This type of property must be in a top A location in order to sell/rent it.

Our tip: 1-2 room apartment

In all locations, be it A, B, or even C, 1-2 room apartments can be found and the demand is constantly increasing. Since more and more people live alone, a look at the single apartments is always worthwhile.

An example of a special property in C- location: hard to sell.

Mistake 3 – Self-interest instead of investment

You can read a lot about owner-occupation in our article on the subject. Here you will learn again in a nutshell why it is not advisable to use your first property for personal use. Therefore, our tip: Do not buy an owner-occupied property without capital investment, because you are responsible for 100% of the operating costs, neither tenants nor the tax office comes to your financial aid.

Reasons against self-interest

• Self-interest is the most expensive way to live
• One will never be completely rent free due to ongoing costs
• You pay off the property yourself
• Self-interest reduces credit rating
• Property is not suitable for old age later

Mistake 4 – A house as a first property

If you choose a house as your first property, you must also be aware that this means that you will have to bear 100% of the costs. Therefore our tip: Buy a condominium as your first property.

Condominium: Cost allocation made easy

As soon as you acquire an apartment in a multi-party building as your property, you become part of a community of owners. Thus, all running costs incurred for repair, maintenance and modernization are divided among all parties of the house.

Here is a small example:

• Homeowner (100%): 12,000 euros
• 4-party house (25%): 3,000 euros (-9,000 euros)
• 8-apartment house (12.5%): 1,500 euros (-10,500 euros)

Mistake 5 – Let the emotions flow in

Real estate should always be viewed rationally instead of emotionally. Therefore, our tip: Never buy a property out of emotion. Even if you find the property at first sight insanely beautiful, think again well about it. Often such buildings are due to the year of construction and the condition dilapidated or in need of modernization, whereby for you in the end much more costs than actually jump out.

So what should you do?

• Avoid impulse buying!
• Testing at commercial and technical level
• Examination of yield, purchase and resale value

A typical property that is bought out of emotion: A lot of charm, little profit.

Mistake 6 – No attention to resale value

A really great purchase price! – And now? How much do you get out of it in the end? Many people don’t pay attention to the resale price when buying a property, but you definitely should!

The decisive factors for the resale value are:

• Property type
• Location of the property (see return or investment)

Comparison: location and increase in value

Let’s compare the 3 types of location and the increase in value:

• A- location: value increase at 4-6% per year
• B- location: value increase at 1-2% per year
• C- location: no increase in value

As a beginner, they opt for a condominium in a good C- location or B- location.

Mistake 7 – Top equipment- bad property

Great kitchen, great furniture, you bought the property only because of its great equipment? That’s bad for you, because you’ll make less profit. What you are looking for are properties in need of renovation, because this way you can renovate them yourself and then sell them, making a profit.

Mistake 8 – Paying in huge installments

You want to pay off your loan as quickly as possible and think large sums will help you? Unfortunately, this is wrong. Here’s our tip: It’s better to agree on small repayment installments with the bank.

• The tenant pays off the property, all surpluses are direct asset accumulation
• Inflation reduces the loan for a long time
• The higher you set the repayment, the less is left at the end of the month
• The faster a property brings cash flow, the higher the surplus

Next step: criteria to the condominium

The property for first-time buyers. Want to buy a condo as your first property, but don’t know where to start? Here we’ve created a checklist of 11 items for you to determine the basics and criteria of your real estate search. Whether determining the maximum purchase price, the question of owner-occupancy or capital investment, yield or investment property as well as existing or new construction – here you will get all the answers to your questions.

Owner-occupation vs. real estate as an investment: advantages and disadvantages of owning a home

The dream of owning a home is a goal that many people have in mind. But does it make sense to choose a house for personal use as the first type of property? Or is it not perhaps more sensible to use the first property as an investment? Living rent-free in old age will never quite come true, even with a home of your own, because you are always 100% responsible for all running costs. Therefore, in this article you will find a comparison between owner-occupancy and a property as an investment, which should help you make the decision to use your first property.

• Personal use vs. real estate as an investment

Yield or investment property: the difference lies in the goal

The direct difference between the two forms of investment lies in their objectives. Depending on how you would like to invest your money, both forms bring you profit. In short, through the return through rent you get a direct cash flow, through an investment property an increase in value takes place in the long term. But what do the terms mean in detail?

Return on property: Constant cash flow

Yield Real estate generates a high rental yield. This means that after all deductions, such as repayment, interest and management, a surplus remains which you can credit to your own pocket. The goal when buying a yield property should always be in front of your eyes:

• Primary: Direct profit through surplus from rentals
• Corresponding rental yield should be guaranteed >6%.
• Properties are located in C+ (higher risks) to B+ (hardly any risk) locations

Investment property: long-term value enhancement

When buying investment real estate, one keeps the goal of value enhancement in mind. The profitable sale of the property at a profit is the main focus, not the income from the rent. The goal when buying an investment property is therefore the following:

• Primary: Increase in value of the property with profit from the sale
• Real estate should be located in A- locations

Advantage yield real estate: Top profit in B and C locations

Investment property requires a lot of capital, since there is no immediate income from renting – ergo no immediate cash flow. It therefore takes years before the property can be sold again at a profit.

What is worthwhile here for the beginning to enter significantly more, are yield real estate.

Yield real estate: advantages

An investment property offers many advantages. We have listed them for you here.

• Instant source of income
• Surpluses can offset other properties with shortfalls

Yield real estate: Disadvantages

However, we also have to note disadvantages here, even if this is the best way for beginners. What they are, read here yourself:

• Surpluses are subject to taxation, tax burden increases
• Higher yield comes at the expense of value enhancement
• Not to be found in A- locations

Excursus A- B- and C- position: Alternatives

You can’t find a yield property for you in an A- location like Berlin or Hamburg? Our tip: Look for properties in B- or C- locations, this will make your search easier.

B- and C- position – Why?

• Real estate search is less complicated
• Moderate prices
• The supply of yield properties is greater here

Here you can learn more about A- B- and C- locations./ Immobilien-Erfahrung.de

Next step: self-disclosure for the bank

You want to buy your first apartment or house and the bank wants a self-disclosure from you? Learn here what a self-disclosure is, what it says and download a free PDF template that you can use to convince your bank!

Expensive housing: Self-interest becomes a disadvantage

Financially, the personal use of a property is certainly not the best idea. In order to secure one’s financial situation with real estate, it is better to consider the property as an investment – unless a property has a special emotional value for you for personal use! Why this is so, you will learn here.

Disadvantage Self-interest: Negative cash flow

To begin, what does self-interest mean to me?

• As an owner and owner-occupier, you always pay 100% of the operating costs yourself.
• You get neither money from the tax office, nor from potential tenants
• So self-interest means constant expenses and no income
• Credit rating decreases due to higher risk

Advantage of real estate as an investment: Positive cash flow

Real estate as an investment brings you clear advantages. Find out what they are here:

• All costs and expenses are borne primarily by the tenant and the tax office
• With a good return, the investment property almost pays for itself
• Interest is tax deductible
• Credit rating increases already after the 1st year

Buy and rent real estate: Security for old age

You have bought your first property and decided to invest. Great, then almost everything runs by itself! Here we have an example for you.

Example: Purchase of a condominium for 250,000 euros

• Property is purchased with financing from bank
• Tenant pays 1,000 euros a month
• Tenants pay thereby: Interest, redemption, modernization
• Tax office helps through deductible costs and tax relief
• Gross rental yield (annual rental income divided by purchase price) becomes a steady source of income
• This increases the credit rating, which favors the purchase of a 2nd and 3rd property

Still not quite convinced? Read more about owner-occupation and capital investment here/ Immobilien-Erfahrung.de

Conclusion: Personal use vs. real estate as an investment

In this article, you have learned a lot about what it means to invest in self-interest or in a capital investment. Here we’ve put together our conclusion on what we think is the sunniest way to invest in real estate.

• Self-interest – Negative cash flow; you pay all ongoing operating and maintenance costs yourself, no one participates in them
• Capital investment – Primarily tenants and the tax office pay off your expenses, your credit rating increases and thus provides you with a basis for your real estate portfolio.

On both sides, increases in value can be seen, but once the purchased real estate is paid off, you have a constantly running source of income with it. For you, this means a carefree and, above all, rent-free life in old age!

Next step: return on investment or investment property?

You have decided: Finally buy your first own property! But am I buying an income property or an investment property? But what is it anyway? What is the basic difference between these two types of investment? And what exactly is an A, B or C location? The most important thing is that both types of investment generate profit for you. In which form, you can read here. Here you will learn everything you need to know about the return and the investment of a property.

How does the pension system work?

The pension system in Germany is based on three pillars; statutory, occupational and private pension provision. Many people are probably aware that this system is not doing too well these days. Read here what the three pillars are all about:

Here is an overview of the three pillars:

1. Statutory pension provision
2. Occupational pension provision
3. Private pension provision

Statutory pension provision: Collecting points for all they’re worth

Statutory pension provision ends up not really being worth talking about, thanks to certain factors such as inflation, i.e. the devaluation of money. Roughly speaking, “pension points” must be accumulated, all of which have a certain value:

• Average earnings (< 60,000 euros gross / year): One point per year
• Below average earnings : Half point per year
• Above average earnings (> 60.000€ gross/year): Two points per year

The points are then added up to the pension and multiplied by the “pension value”. Here you can find the current formula for calculating the monthly pension amount:

Monthly pension amount = earning points x access factor x pension value x pension type factor

Here is a quick example to calculate the pension of an average earner:

Example: Average < 60,000 / year

Example (40 years of work):

• Pension points: 40
• Pension value current: ~ 34
• Standard age limit / pension type factor: 1

Monthly pension:

• 40 x 34 x 1 = 1.360 Euro

Factor source: German Pension Insurance.

However, it does not stop there. Even with this amount, all taxes and inflation must still be calculated. Factors such as tax, health and long-term care insurance must also be taken into account. Especially inflation hits your pension hard. Don’t you think? Here you can find an overview of the change in the inflation rate in Germany from 1992 to 2020.

You can find more statistics at Statista.

Occupational pension provision: Secondary cover as a solution?

The company pension scheme is an additional safeguard to the statutory pension scheme. It is considered a supplementary pension and is financed by the employer. Even with this, it is difficult to cover one’s costs in old age.

Private pension provision: Investment in real estate

Let’s move on to private pension provision. The first question that arises here is how do I invest my money and in which form of investment should I invest at all? Inflation is our biggest enemy when investing in a financial product, but it is our best friend when investing in real estate, as we have already described in the article Wealth Creation & Inflation.

Here briefly again in simply explained!

Investment form Financial product:

• 10,000 euros in a savings account are and remain 10,000 euros. Even if the money is only worth half in 30 years (inflation).

Investment form real estate:

• If you buy a condominium for 10,000 euros, the money in 30 years is only worth half, you get for your property 20,000 euros

As you can see well here, when you invest in a property, you are always very well protected against inflation and can also still make profits. Unfortunately, our pension is similar to the investment in a financial product – in the end, we all make a loss.

The next step: real estate as an investment

This article compares the classic investment of money in the bank with a capital investment in the form of real estate. Real estate creates “real value”. Find out what that means here!

Learn here about the benefits of investing in real estate for your retirement savings, too!

Buying a house: High cost, high risk

The dream of owning your own home – for many, this is a life goal that needs to be achieved. Besides many positive aspects, owning your own home also has its downsides. When you buy a family home, whether for your own use or as an investment, you are always 100% responsible for the costs incurred. Read more about the risk of buying a house here.

(Alb) – Dream: The pitfall of home ownership

For many, the former dream of owning their own home often quickly becomes a nightmare. Many use a building savings contract to pay off a house until retirement age, with the intention of living rent-free. However, the assumption is usually deceptive and you still get into debt, as you are responsible for 100% of the costs incurred. So one is never completely rent-free.

• 100% investment costs
• 100% self-responsibility for costs
• Even after paying off the loan not quite rent-free

3 mistakes when buying a house

There is a lot to consider when buying a house. What many people forget are the mistakes that can be made when buying a house. Here we have the most important points for you, why we advise against a house as a first property.

Error 1

The costs incurred for the house always remain, for which you yourself are 100% responsible. You are never really rent-free with a property for pure personal use.

• Management and maintenance costs of the house remain forever

Solution – For a truly carefree life, it is advisable to maintain a second and third property that you rent out. With the proceeds from these properties you can pay the management and maintenance costs of your own property and, depending on the return, pocket the rest as profit.

Error 2

The property you bought when you were young is not suitable for your old age later on. Sooner or later, the property will have to be remodeled to meet the needs of the elderly, which will incur additional costs.

• Property is not suitable for old age later
• Costs for age-appropriate conversion
• Property sooner or later becomes too big

Error 3

Your credit rating at the bank is reduced by a property with owner-occupancy and without an additional capital investment. Through the self-use of the property, you suddenly have more current expenses than income, the running costs are also always 100% your responsibility. In the event of a job loss, the bank of you additionally has no coverage, because this means loss of income and rent for you and thus a higher risk for you and the bank.

• More running costs, less spending
• Costs 100% personal responsibility
• Job loss means loss of income and rent – risk

Source: Real Estate Types/ Real Estate Experience.com

Multi-family house: high equity, high costs

So owner-occupancy is the most expensive way to live. The situation is different with investment property. Here the tenant and the tax office more or less pay off your debts. Therefore, we now come to a multi-family / multi-party house. But real estate beginners are warned! This area is more for experienced people.

So when should you think about buying an apartment building? When you have enough equity to cover the purchase price, management costs, maintenance costs and modernization costs. Despite the ongoing rental income, here, as with owner-occupation, they are 100% responsible for all costs incurred.

Here again in brief summarizes the disadvantages of a multi-family house:

• High equity required to cover costs
• 100% of the costs must be borne by the owner himself as the owner

Residential and commercial buildings (WGH)

WHGs behave similarly to multi-family houses, but are nevertheless much riskier to invest in. Since they are equipped with commercial space in addition to residential units, they are vacant more often than residential units. The area must be maintained nevertheless, whereby additional costs result. This in turn means that you have to raise more equity.

• High risk due to vacancy
• Even higher equity required
• Vacancy must be kept in operation – More costs

Condominium: High yield & cost sharing

The solution for your first property? A condominium! The big advantage? When you buy a condominium, you are part of a community of owners, so you don’t have to bear the costs of a house all by yourself. The costs for maintenance, repair and modernization are shared among all owners. Regardless of whether it is for your own use or an investment property, the running costs are always lower than in a house where you are the sole owner.

• Part of a community of owners
• All costs incurred are divided by the number of owners

A short example: Let’s say we are talking about a heating system for 16,000 euros. You are part of an 8-part apartment building, with 1 condominium. The costs are divided by 8, so you pay -14,000 less and only 2,000 euros for the new, modern heating system.

Commercial, special real estate and monument protection

You should take a closer look at properties with commercial use, listed buildings or properties for a special purpose before buying. Why, you will learn here in a short overview!

Commercial property

• Nothing for beginners
• Subject to different legal framework than residential
• More frequent vacancies than for residential space (fluctuation)

Special real estate

Villa, farm, winery or even workshop and shopping center, all these are special real estate.

• More difficult financing due to high risk for banks
• Rather buy in A- and B- locations, as a rural location carries too high a risk

Real estate under monument protection

Real estate with historical value and special status (rights, obligations, taxes and subsidies).

• Tax incentives
• Higher costs for repair
• Restrictions on structural changes

Conclusion: What should I invest in at the beginning?

If you look at our comparison, you can clearly see that every property, except condominium, has disadvantages. Therefore, our conclusion is: condominiums are the easiest way to get started in real estate. Here again briefly our most important points at a glance:

• Self-use is the most expensive way to live – you are responsible for 100% of the costs yourself
• Ideal case for entry: condominium, for rent (investment), with good return!
• If it is to be owner-occupied, then directly with 2nd or 3rd property as an investment.

The next step: how to build your assets?

Are you interested in real estate to secure and build up your assets? Then read on here: Everything on the subject of investment, value investment and inflation.

New issue: ISSUE #10 Graft Architecture Office

Here you can find a small overview of the topics printed in the new issue:

• Interview with the architecture firm Graft about company philosophy, foundation, passion and exciting projects
• Apartment Guide: From the cozy old building apartment to the luxurious loft apartment
• House Guide: The big overview of different types of houses like detached houses to vacationhomes

Read online! Now on fivmagazine.com

Read the whole magazine online as well:

• FIV Issue #10

Architectural firm Graft in an interview: Current projects, company philosophy and successful foundation

Whether futuristic skyscraper, VoloPort or modern dental practice: Graft has a versatile real estate project portfolio! The globally successful architecture firm was founded by the 3 German architects Wolfram Putz, Lars Krückeberg and Thomas Willemeit in 1998 in Los Angeles. Since 2018, Sven Fuchs, Dennis Hawner and Georg Schmidthals have been part of the team of partners who continue to drive and develop the company in a future-proof manner. The company now employs over 100 people and has offices in Berlin, Los Angeles and Shanghai. Their project diversity is extensive, from modern office buildings to moveable home bases made of containers, or even residential buildings such as Villa M, to future projects such as e-charging stations or Volocopter ports. Their modern implementation of diverse projects is unique, and their passion is what sets Graft apart. The founders talked to us about their passion, founding the company and their numerous projects. Dive into the world of design real estate!

• Interview with architectural office Graft

Apartment and house guide: Here you will find the property that suits you perfectly!

We present you in our big apartment and house guide different types of real estate, so you can find your perfect property. We go into detail about the advantages, disadvantages and features of each type of property, so that you can choose your dream property.

Old building apartment: apartment with high ceilings decorated with stucco – advantages, disadvantages & explanation.

You’re a student, want to move in with your partner or just want to get away from home and into the city? Maybe you are even thinking about buying an apartment? Then an old building would be right for you. Due to their predominant proximity to city centers, Altbau apartments are hot on the market. High ceilings, bay windows and box windows are characteristic features of this architecture and promise a feel-good factor. Altbau apartments are often found in an apartment building or even in a historic villa. Whether renting or buying, here you will find useful tips, advantages and disadvantages around this special building type.

• Old building apartment

Loft apartment: buying, renting and living – how old factories become luxury apartments

If you are looking for an apartment or want to find out more about the market, you will come across a number of terms: apartment on a floor, attic apartment, maisonette and many more. We would like to answer the following question for you here: What exactly is a loft? During the 40’s lofts first appeared in large cities such as New York. In this process, old storage areas and factories were converted into living space in order to live inexpensively. This definition has nothing to do with today’s meaning of a loft. Nowadays lofts are highly sought after, exclusive and very expensive. Nowadays, old industrial buildings continue to be converted, but also new buildings are built in loft style. If you want to learn more about the advantages and disadvantages or tips about this type of architecture, then you are at the right place.

• Loft apartment

Single-family home: build, buy or rent? Modern ideas for your own home

The traditional single-family home has not been so traditional for a long time. Quite the opposite. The single-family house is rightly the most popular type of house in Germany and is becoming increasingly modern, although it continues to compete with other types of house such as the villa, the solid house or even the prefabricated house, although the categories do not have to be mutually exclusive. From the floor plan, to energy regulations, to the little extras: your single-family home is up to date. Especially for young families, this type of house is something very special, as this will usually be the first home of their own. You are interested in building or renting, or maybe even want to buy a house? Here you can find out everything about the advantages and disadvantages of a single-family home, useful tips and everything you need to know, from the perfect plot of land to the right energy regulations.

• Single family house

Vacation home: buy or build dream house by the sea or lake? Advantages, disadvantages & tips

Who does not know it? You’ve simply fallen in love with a place and would love to spend every free minute there. But the workplace and the main focus of life are simply too much anchored in the actual home country. In such a situation the option of a vacation home opens up. Whether on the beach or on the lake: a vacation home or weekend house can be located basically anywhere, and have almost any house form. Whether it is a villa, bungalow or country house, a vacation home can be many things. Buying a house for rental purposes is also an option. Criteria, characteristics, and the question of if and how we try to answer you in the following article.

• Vacation home

House types from A – Z: Features, definitions and advantages & disadvantages

You want to take the next step and are looking for a new property – preferably a house? Then you’ve come to the right place! There are so many different types of houses, it’s hard to choose, and it’s not easy to keep track of them all. We have listed all the house types below with brief definitions and a link to a comprehensive article for you. Get to know the different house types with their respective characteristics and find exactly the right house for you!

Tip. Are you looking for the perfect property for your future? Here you will find tips and necessary information for buyers: Buying a house

Bungalow: no stairs, one floor, flat roof & space

Many people know the word bungalow from the context of holidays. But bungalows are not only popular holiday homes, but also a possible choice for your own home. A bungalow is one thing above all: practical – and modern. This type of house is especially popular with young families, as it combines all living spaces on one floor and, especially due to the absence of stairs, does not pose a danger to children or senior citizens. Choosing the right house is certainly not easy, because it is an important decision that may affect your whole life. Here you can find out everything you need to know about bungalows.

• Bungalow

Semi-detached house: Living with direct neighbours & garden

The semi-detached housing solution can be a slightly cheaper alternative to whole houses. Often you don’t even have to compromise on living space. Rather, the space is saved around the house. As a result, semi-detached houses can save you money. Additionally, it could be that you share garden space with neighbor.

A semi-detached house promises the optimum living comfort with the area of a house at a lower price. Sounds very appealing in itself, but any other option, this concept also comes with its own positive and negative factors, which we will discuss in more detail later. However, for now, we’d like to tell you a little more about what the living spaces of a semi-detached house might look like.

• Semi-detached house

Single-family home: building, buying or renting

The traditional single-family home hasn’t been so traditional for a long time. Quite the opposite. The single-family house is rightly the most popular house form in Germany and is becoming increasingly modern. From the floor plan, to energy regulations, to the little extras. Your house is up to date. Especially for young families, this type of house is something very special, as this will usually be the first home of their own. Are you interested in building, buying or renting?

Of course, when you ask this question, you’ll think directly of a townhouse or duplex. However, this is not everything. A detached house can be much more than just standard. Especially if you are interested in a self-build, you should look into the latest and most modern standards. Here you can find out all about the advantages and disadvantages of a detached house, useful tips and everything you need to know, from the perfect plot of land to the correct energy regulations.

• Single-family house

Half-timbered house: renovation and historical charm in facade & co.

The rustic houses, which are especially widespread in Europe, have their own personal charm. Especially in the countryside and in villages, you can still find some of these historic buildings. But what looks so appealing to many from the outside can quickly be associated with high costs: renovation or even refurbishment are often necessary for a half-timbered house. But if a half-timbered house has been modernised or at least overhauled, it is an absolutely unique and magical piece.

In classic half-timbered houses, materials such as straw, clay and even calf’s hair were used not only to build a wall, but also to insulate it additionally. The most striking feature of half-timbered houses is the façade, in which the literal half-timbering – the beam construction of the house – is openly visible. Often the “work”, i.e. the wooden beams, is not plastered in the interior either, and accordingly a unique living atmosphere is offered. How you can protect yourself from too high costs and still fulfill your dream of a half-timbered house, we tell you here.

• Half-timbered house

Holiday home / weekend house: Living at the holiday resort with sea view

Who does not know it? You’ve simply fallen in love with a place and would love to spend every free minute there. But the workplace and the focus of life are simply too much anchored in the actual home. In such a situation the option of a holiday home opens up. Whether on the beach or by the lake – a holiday home or weekend house can be located basically anywhere.

Whether a holiday home or a holiday apartment is really suitable for you, if the property is not purchased for pure investment purposes, is determined above all by whether the chosen place pleases you and makes your heart beat faster with every visit. Criteria, characteristics, and the question of whether and how we try to answer you in the following article.

• Holiday home / weekend house

Prefabricated house: The quick dream of a house, construction phase, selection and more

What is actually a prefabricated house? This question is very difficult to answer, because this type of house is very diverse. Most providers have a large repertoire of prefabricated house types and you are spoilt for choice. Do you want to live in a detached house? In a housing estate or rather a bungalow? With a cellar, garage and garden? These are all important aspects that you should and can consider when planning your house. Because a prefabricated house is one thing above all: versatile. The main advantage is that there are no long and costly construction phases, because the house is literally already finished. Features and advantages & disadvantages you will find in the following article.

• Prefabricated house

Country house: land, garden and life with the closeness to nature

A country house is a residential building on an estate. The large property in a rural environment usually has a spacious garden. A country house does not only convince by its size and the free space but also by its rustic, romantic charm. But nowadays you can find the country house style more and more often in the city.

This country house style is determined by massive buildings with generous proportions. The house entrances are usually strikingly designed, but the long balconies, terraces, dormers and pavilions are also eye-catchers. Folding shutters, doors, windows and railings made of real wood ensure the perfect harmony of the house. Sometimes the property also includes a conservatory or a carport. Wood, rattan, stone and ceramics, natural materials are mainly used in country houses. The floors are tiled in warm colours. A tiled stove makes this country house cosy and warm – the warmth radiates throughout the entire living space of the house.

• Country house

Solid house: construction, durability & features

A solid house is the construction method of a house, in which a house is built according to the plan of an architect with solid building materials. Each house here becomes unique due to the individual wishes of the respective builder.

The opposite of a solid house is a prefabricated house: In a prefabricated house, the house is built according to the modular principle and consists of a wooden construction. The house is built brick by brick. The building materials are delivered to the construction site, where they are assembled into a finished house by specialist companies. The building materials used for walls and floors are aerated concrete, sand-lime bricks or goat bricks. The staircase and roof construction, on the other hand, is usually made of wood. Learn more about solid houses in the following article.

• Massive house

Terraced house: door to door with the neighbours, purchase price & Co.

Looking for an affordable home near the city? Then how about a terraced house? A terraced house is the perfect alternative between a city apartment and a house in the country. Low purchase price, small garden and/or a terrace in a friendly neighbourhood. We show you what makes a terraced house so attractive and why families and couples in particular like to settle in this type of house.

A terraced house is a row of individual houses which are built directly next to each other without any space in between. However, there is no access between the houses, so there is still the privacy of a normal house. Most of these houses have a minimum size of 160m².

• Terraced house

Beach house: House by the sea – the dream of a house on holiday

You love to listen to the sound of the sea, gaze at the starry sky while the sand tickles between your toes and you breathe in the salty sea breeze? Who says these classic holiday memories should only be part of vacations? Why live in a cramped rented apartment, expose yourself to daily exhaust fumes, and work out in a gym with concrete walls? In this day and age where mobile working has become the norm, Pilates and surfing on the beach are among our favorite activities, and the thirst for adventure is constantly on the rise, the beach house seems to have established itself as the new dream property par excellence. The beach house as an investment, vacation home or home of your own! Convince yourself!

• Beach house

Villa: Living in luxury with lots of space & garden

In the past, a villa, especially the city villa, was often used as a second or country house to be close to the city. This applied exclusively to the wealthier urban population. Nowadays, that has changed. City mansions are no longer used as second homes and are primarily occupied by many families. Meanwhile you have the possibility to renovate an old building or to build a new one. A special advantage is the large garden and the pool, which is often included. In this article you will learn everything important about villas. Buying, building, in a modern style or more traditional? You decide!

• Villa

Energy efficient building

1. Low-energy house
2. Zero-energy house
3. Passive House

Low-energy house: characteristic values, construction & requirements

Sustainable living is a trend that is becoming more and more prevalent and also enjoys state support. Therefore, the interest in environmentally conscious housing solutions is growing more and more. For this reason, we have decided to put together the most important facts about efficient living, so that you can decide whether a low-energy house could also be interesting for you.

Caution is advised when buying and renting a low-energy house, because: The term is not associated with specific requirements for the house! Only if one would like to make the housing unit energetically valid with KFW, certain requirements are made. These should meet a low-energy house in any case. What exactly these are, we will explain to you in more detail below.

• Low-energy house

Zero energy house: definition & advantages and disadvantages at a glance

Since November 2009 the long constructed idea of the zero energy house has become reality and more and more people are now dreaming of turning their own house into a zero energy house. Especially when buying a new home, this type of house has gained popularity. However, many do not know much about the term and simply associate it with sustainable living.

Zero-energy houses are small, building planning and energetic masterpieces. A zero-energy house is oriented in its standard value to the passive house. This means that it does not exceed the energy requirement of 15 kWh/sqm per year (regulation of the Passive House Institute Darmstadt) and also produces the consumed energy itself through photovoltaics and solar thermal energy. This means that a zero-energy house forms a completely self-sufficient entity and is not dependent on electricity purchases. What is actually behind this type of house, you will learn in the following article.

• Zero-energy house

Passive house: new construction, features and costs

Sustainable housing options are divided into different house options. Part of them are zero energy houses, low energy houses and also passive houses. You can also find detailed articles on other options in our magazine, but here we will only talk about the passive house for the time being.

A house is called a passive house as soon as it requires less than 15 kWh/sqm per year. This value is achieved through various measures in the construction of the house. Multiple glazed windows and high-quality insulation reduce the transmission heat loss and thus minimise heating costs.

• Passive House

Single-family house: what are the features & characteristics?

What is a detached house? Of course, when you ask this question, you will immediately think of a terraced house or a semi-detached house. But this is not everything. A detached house can be much more than just standard. Especially if you are interested in self-building, you should look into the latest and most modern standards. In this article you will learn everything about this topic. Let’s start with the most important features of a detached house.

Are you looking for the right house? Then check out our guide! Here you will find definitions, meanings and lots of information: House types from A-Z

Features of a single family house

First things first. A family home is meant to be for a family and it should function accordingly. In most cases, you buy/build your first home when you already have a small family, or when you plan to start a family. And in most cases, you also grow old in it. The children have moved out at some point and you use the space differently. Accordingly, you should also plan a purchase or a construction and think future-oriented. You have a wide choice of detached houses and you have to find your perfect home. Whether semi-detached house, bungalow or city villa. You have the free choice.

Advantages & disadvantages of a single-family home: freedom, investment, garden & Co.

As with any type of home, there are many advantages but also some disadvantages that you should consider if you are planning to build, buy or rent a home. Think about what you consider important and what you would like to realize in your dream home. We have done some research for you and have picked out the most important advantages and disadvantages to help you with your decision.

Advantages: Freedom within your own four walls

Probably the biggest advantage of a single-family home is the freedom. Especially if you have previously lived in an apartment building or a flat, you will appreciate this advantage the most. You now have the opportunity to live in your own four walls and design everything as you see fit. Especially if you want to build your own house, you can decide from the beginning how you want the rooms and the design of the house to be. But even if you decide to buy, you can give free rein to your individuality and creativity. Another big advantage is the garden. Almost all detached houses have a garden and this is a plus point, especially with children, as they can always get some fresh air at any time.

• Freedom
• Your own four walls
• More individuality/ creativity
• Mostly a garden

Disadvantages: big investment with a lot of responsibility

One of the biggest disadvantages is probably the higher costs. Especially if you have lived in an apartment before, this is a big difference and you should be aware of the costs involved. The biggest investment will most likely be building or buying, but it doesn’t stop there. You have to pay more heating bills and especially you don’t have to disregard any repairs that come up. After all, you no longer have a landlord to take care of the problems that arise and you are now responsible for the financing yourself. So think about it in advance and calculate everything. Whether to buy or build a house should not be a decision to be taken lightly.

• Great investment
• Higher heating costs
• No landlord for repairs

Source: Single-family house (Lukinski.de)

Detached house perfect for…?

Who fits into this house? A single-family house is customizable and can be built in a wide variety of designs. Therefore, this type of home is for more than one person. If you’re just moving out of home, a student, or single, a single family home probably wouldn’t be for you. Simply because of the high cost of this investment and the utilities involved, this is hard to do on your own and you would probably have way too much space. We have picked out the perfect groups of people for you here, who would ideally fit into a detached house.

Families: your first home with child and dog

As the name of this type of house suggests, the detached house is perfect for a family. It doesn’t matter if you have a young family, your children are older or if you don’t have any children yet but family planning is on the horizon. The detached house makes all your dreams come true and you can live the way you always wanted to. The garden is also a great advantage. Your children can go out into the fresh air whenever they want and you don’t always have to be there. In addition, detached houses are usually located in housing estates or residential areas with play streets, so your children can play with the neighbours and still be in your field of vision.

Seniors: a house for a lifetime, with partner

A single-family house is also very suitable for seniors and retirees. It is often the case that you buy a house as a young family and live there for the rest of your life. Of course, at some point the children are gone, but then you would have the opportunity to redesign your rooms and set up according to your wishes. So you should make sure that you choose your first home with an eye to the future, as you may spend the rest of your life in this house.

Comparison of different building styles and sub-types of the single-family house

A single-family house is not just a single-family house. There are many different types and styles of this type of house, which all belong to the same type. We have compared three of these sub-types for you so that you can find the right family home for you.

Bungalow: One floor, no stairs

The bungalow is also a type of single-family house. Unlike the other types of houses, a bungalow has only one floor, which is inhabited. Usually this type of house has a larger plot, and an attic or basement, which serve as storage space. Due to the size of the property, a bungalow is usually more expensive than other types of houses. This is also due to the fact that this house is detached. If you would like to learn more about this type of house, take a look at the article on the subject of bungalows.

• Bungalow

Urban villa: luxury, space and comfort

The (city) villa is above all more spacious and offers more space. Especially the large grounds and the usually spacious garden are trademarks of a city villa. The house is detached and often designed in the style of a country house. The floor plan is larger than, for example, a semi-detached house and the rooms are also usually open and bright. Due to the size of this type of house, the (city) villa is more expensive and usually found in more upscale neighborhoods.

• Villa

Semi-detached house: neighbours, rent and space for children

A detached house as a semi-detached house is usually cheaper and more practical than, for example, a bungalow or a villa. In this sub-type, the property boundary and a wall are shared with the neighbour. This has the advantage that there is less heat loss and the heating costs are lower. So you share a property with another family, but you should still get along with the neighbors because otherwise it could be problematic.

• Semi-detached house

Land: the right choice, layout and characteristics

You have decided to build your own house and are now concerned with the question of where best to build? Then you should definitely think carefully and give it some thought. On the one hand you have to pay attention to the location of your future house, but also to the type of land. In order to find the perfect place for your future home, there are a few factors to consider. Here you will find the most important key points summarized for you.

Choice of location: City or country?

First of all, you should consider the location of your property. Do you want to live more centrally or rather outside? In the city or more rural? Then you should take a look at the infrastructure, which is located at your potential house. How far is it from your work? Where is the nearest school or supermarket? These are all important aspects to consider, but how are the public transport links? Do you have to walk a bit to get to the city centre by train or bus? Last but not least, you should also consider whether you would prefer to live in a residential area or in a new development. Both have their advantages and disadvantages, which you have to weigh up.

• Central or outside
• Infrastructure (work, school, supermarket)
• Public transport
• Residential area/ new development area

Checklist: Choice of the plot

There is also a lot to consider when choosing a plot of land. In addition to the perfect location, the condition of the land is particularly important. You should find out exactly about the history and quality of the land to avoid problems during construction. First of all, take a look at the development plan to find out if your plot is already developed. Afterwards you should have a look at the land register to find out about possible rights of way and to fix the mortgages between you and your credit institution. After that, we recommend that you carry out a ground investigation, which is especially important for the construction of a basement, and then you should exclude contaminated sites such as chemicals, oil or metal scrap.

If you want to learn more about the checklist for choosing the plot, you should visit our article of the house type bungalow. There you will find some useful and important information.

• Development plan
• Land Register
• Soil investigation
• Legacy

Building a single-family house: important aspects for new construction

In addition to the right plot of land, there are still some important aspects that should be considered when building a single-family home. This applies to a bungalow as well as to a villa and all other sub-types of a detached house. In order to keep the financial aspects in mind, we have summarized the most important points for you and described them as compactly as possible, so that you can plan everything ideally.

Service charges, loans & co.

In addition to the investment for the construction of a house, one should not lose sight of the additional costs. A real estate agent, notary costs or the land transfer tax are only some of the additional payments, which you should not disregard. You should take this into account.

In order to build a house you will almost always have to take out a building loan, as you cannot pay these costs exclusively from your own capital. You should therefore check with the credit institution you trust and consider whether you are able to pay it off in the long term.

Decide for yourself who should be your building partner. Do you want to design everything yourself, consult an architect or go for a prefabricated house? How much energy and time do you want to invest in the construction. You should also decide this in advance to save yourself stress.

Make sure that everything runs smoothly on your construction site and that no serious mistakes happen. For this reason, we recommend that you call in a construction expert who will take over the supervision of the construction site and thus relieve you.

Garage, carport or a cellar? These are also things you should decide beforehand. Do you need the storage space that a cellar offers and the parking facilities for your car? Think future-oriented and plan for these additional costs.

Checklist for your house construction

• Additional costs
• Building loan
• Prefabricated house / architect?
• Site supervision
• Garage/ Carport/ Cellar

Building a house vs. buying a house: the most important arguments

To build or to buy? That is the question here. Both have their advantages and disadvantages. When building a house you can decide from the beginning and realize your perfect room layout, when buying you have less work and it is usually cheaper. We have summarized the most important aspects for you here to simplify your decision.

Building a house: Advantages & disadvantages – Co-deciding right from the start

Advantages

• You have the opportunity to help decide everything about the house and room design during the construction of the house.
• Install the latest and most modern technology and equipment and bring everything up to date
• Where is the best connection and what is the environment like? You have the free choice for your location

Disadvantages

• Building a house is usually more expensive than building a home, especially since you want to include all of your desires
• Besides the financial investment, such a house construction is of course also associated with a lot of stress and work.
• You have to expect everything and include unforeseen costs. Something could always come up

House purchase: Advantages & disadvantages – uncomplicated and fast

Advantages

• Buying a house is usually cheaper than building a house because you don’t have any unexpected expenses
• The lack of work is also positive. You don’t have to worry about planning and can devote your energy to something else

Disadvantages

• Often when you buy a house, there is a need for renovation, which includes additional costs. Especially if you want to live environmentally friendly
• You also don’t have the possibility to design and coordinate your house and room layout according to your taste
• The location of the house is not always ideal. Maybe you have a longer way to work or to the supermarket.
• Since you can’t plan for yourself you are forced to compromise and live with a few flaws.

Real estate as a capital investment – comparison of houses and land

Using real estate as a capital investment is currently a trend and for good reason. Interest rates are currently at an all-time low, which has a negative impact not only on the profitability of traditional investments such as government bonds or equities, but also on the conditions for loans. Mehr dazu: Lukinski They are very attractive due to the low interest rates and house buyers can take out loans at very advantageous conditions from banks. But also the development of the real estate market speaks for the investment in a real estate. Investment property prices are rising steadily, especially in hip areas such as Berlin, Hamburg and Munich, which is reflected in high yields.

Real estate can be used as a capital investment in three different ways. First of all through self-use. A property is bought and the owner lives in it himself, thus saving rental costs and using his investment. Of course, the property can also be rented out. Thus, the investment is used to earn monthly rents and thus increase its equity. In addition, the money can also be invested indirectly in real estate through real estate shares or funds. A lucrative method for investors of smaller capital or those who shy away from the administrative expense of owning their own property. However, it should be clearly mentioned that a property is a long-term investment and is not suitable or profitable for short-term investments.

The 9 most important key figures – Real estate as investments

• Purchase price –The purchase price should always be set in relation to the annual cold rent. Check here whether the ratio is usual for the location. A factor of 20-25 tends to be favourable and common in most locations, but from a factor of 30 it becomes expensive.
• Auxiliary costs –In your calculation pay attention in any case to the land transfer tax, the notary costs and the broker commission, since these can make up a considerable amount
• Taxes –How high is the depreciation and the marginal tax rate and what effects can this have on the property as an investment?
• Lifetime –A property is a long-term investment. The intended useful life should always be known in advance, also in order to evaluate the lucrativeness of the property.
• Resale –What influences the performance of your property and how can you resell it profitably in the future?
• Income –In what area are the square metre costs in your region? And what rental income can be expected? Consider also the case if the property is empty and a new tenant has to be found and the rent losses associated with it.
• Maintenance effort –How old is the property and is it possible to incur future costs for renovation, refurbishment, etc.?
• Administrative costs –How high are the administrative costs that the property occupies?
• Financing –Do you need financing to acquire the property as a capital investment? Be sure to pay attention to the monthly repayment rates and whether a property is still worthwhile as a capital investment for you.

Here you can find the answer to the question: How can I invest my money sensibly?

One-family house as capital investment – renting, own use or as holiday home

Investing in a detached house has many advantages. For the investment in a house a considerable capital is assumed first of all natural. By letting, however, the capital invested can grow and the property pays for itself in the long term. Compared to other investment properties, a detached house offers the advantage that it can be offered at a high rental rate depending on its location and quality, and the investment pays for itself and yields success in a shorter period of time. Single-family homes are also in great demand and popular with young families in particular. Of course, a single-family house can also be used for one’s own purposes or made available to one’s own children or family members. Single-family houses are also suitable as holiday homes in the right areas and as such can be rented out temporarily.

Land as investment – clever businessmen watch out

The acquisition of land as an investment can be very profitable if certain things are taken into account. On the one hand, due to steadily rising population rates, it can be assumed that real estate will no longer lose value in the future. In addition, buyers have the advantage that the additional revenue generated after the sale of the property becomes tax-free after a holding period of at least 10 years. During the holding period, the capital invested can also be increased by rent or lease income. An additional possibility is the rental of small rental spaces, such as garages, parking spaces, parking lots, storage containers, but also the rental of space for advertising, vending machines or clothes collection boxes is possible. A trick that clever businessmen use again and again is the purchase of very large areas of arable land. This land is then divided into smaller sections and resold for the construction of single-family houses, for example. Large plots are usually relatively cheap compared to smaller plots, which makes the sale of several divided small plots profitable.

Investment in land also has some advantages over investment in real estate. The holding costs are comparatively lower. In addition, there is a lower risk of damage to the building or nomadic tenants.

Two-family- & multiple dwelling as investment – much responsibility for investors

First and foremost, two-family houses or apartment buildings have the advantage that they generate regular rental income from several tenants instead of just one rental income per month, as is the case with single-family houses. The security of the capital increase is therefore comparatively high for multi-family houses, whereby it must also be noted that the capital contribution must also be higher than for a single-family house or a property. A further risk exists in possible rent losses or expensive repairs, which must be made at the house. Investing in a multi-family dwelling has a high responsibility and in the worst case can mean a lot of work, but the capital investment can also be very profitable and have many advantages.

Condominium as an investment – small starting capital, high capital maximization

A condominium as a capital investment offers great opportunities to maximize the capital invested. The possibilities are somewhat limited compared to a house as an investment, but the risk is lower. The rental of the condominium brings a monthly rent, which expands the capital employed. As a prerequisite, however, a lower starting capital is necessary than with the purchase of a house, which is extremely advantageous for many buyers. The risk of loss of rent also exists with this capital investment, but the risk of damage is much lower than with a house. The EIgentumswohnung can also be used as a holiday home and can be rented to short-term tenants or used for personal use.

5 tips for buyers – a property as an investment

• Tip 1: Clarify your budget at an early stage
  The amount of equity capital is the most important indicator that future real estate owners should deal with. This key figure is not only important for the calculation, but also for the repayment of the possible loan and interest. How much budget is available is therefore decisive for the purchase decision process and influences it the most.
• Tip 2: erase as high as possible
  The initial redemption should be at least two percent, so that you also have something of your property in the long term. This plays an important role especially in low-interest phases, since the repayment portion of the rate increases more slowly with low interest rates than with high ones.
• Tip 3: Estimate prices correctly
  In order not to buy a property above the market price, important parameters should always be compared in advance. Points such as location, price development, environment and equipment or size of the house should be compared with the individual market of the environment.
• Tip 4: Hedging interest rates
  Choosing a long borrowing rate commitment is essential for real estate buyers, because if the market interest rate has risen at the end of the borrowing rate commitment, the credit rates automatically become expensive. A low-interest phase should therefore be exploited in order to secure the best interest rates for the entire term as far as possible. Full planning security offers full repayment loans that are fully paid off at the end of the fixed interest period.
• Tip 5: always stay calm
  Even if market pressure prevails, the decision to invest in real estate should not be made prematurely. It means keeping calm and always rethinking the decision well. When making this decision, always consider the rental income in relation to the returns on other investments.

New building VS old building – care and maintenance of the investment

The question of a new building or an old building is not always easy, because both captivate with their own advantages. A new building has the decisive advantage that the property can be designed entirely according to the wishes of the client. This applies both to the property itself and to the choice of location. When a new house is built, the latest technology is always used. Both in terms of security and theft protection as well as energy efficiency. The latest insulation and thermal insulation not only helps the environment, but also reduces heating costs. But a building also has one or two disadvantages. Building a house can be very strenuous and exhausting, as the client always has to keep control over the construction site and the work required. In case of problems with the developer, the client always gets the short end of the stick, as the money invested is usually lost. In addition, construction errors are only noticed very late in a new building, usually only after a few years. In addition, a new building is more expensive than an old one because everything has to be made new. With an old building, on the other hand, the stressful planning and construction phase is eliminated and the move-in can be started immediately. The old building also has the advantage that it can be inspected and checked for construction errors in advance. Since there are no costs for the public development, old buildings are usually cheaper than a new building, even if with an old building often still renovation and redevelopment costs result. In order to avoid these costs as much as possible, a detailed appraisal of the building should be made in advance to avoid any negative surprises. A further disadvantage of the old building is that conversion measures are often only possible to a limited extent due to the building structure or monument protection.